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All posts by Alan Mcquinn

EU Guidelines for “Right to Be Forgotten” Harm Transparency and Represent a Vast Overreach on Internet Policy

On November 26, the Article 29 Working Party released guidance for the “Right to be Forgotten”—a policy that allows users to request that search engines remove links from search queries associated with their names, even if the information being removed is accurate. These guidelines will force European privacy laws on other nations and erode free speech rights globally. These new rules will also make it difficult for third-parties to determine when links have been removed, diminishing the ability for websites to appeal removed links.

The working group has stated that Google and other search engines should remove links not only for European-specific domains (e.g. google.fr), but for all global domains (e.g. google.com). In effect, Europe is saying that its rules for the Internet should apply everywhere and trump that of any other nation.

As ITIF has argued previously, Europe should not seek to impose its policies on other autonomous nations, including by extending the Right to be Forgotten beyond the country code top level domains of European nations. Instead, European nations should create domestic Internet policies that do not affect the ability of other nations to set their own policies.

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New York is moving in the right direction on BitLicenses

On July 17, 2014 the New York State Department of Financial Services (NYSDFS) released a proposed regulatory framework for businesses that use virtual currencies (e.g., Bitcoin) to apply for BitLicenses. The proposed policy would regulate businesses if they hold or transmit virtual currency on behalf of others, or if they convert virtual currencies to everyday currencies (e.g., USD). These rules were proposed to bring regulatory certainty, transparency, and clarity to virtual currency businesses (for background on the BitLicensing framework, read our previous post). Seeing areas that were ripe for improvement in these proposed regulations, ITIF filed comments with NYSDFS to encourage innovation, competition, and investment in virtual currency businesses.

Since the comment period ended on October 21, 2014, NYSDFS Superintendent Benjamin Lawsky has signaled that NYSDFS may adopt several of the recommendations outlined in our comments. Among them, Lawsky has signaled that BitLicenses will not apply to virtual currency miners—businesses or individuals that create and circulate virtual currency on the blockchain.  Lawsky has also stated that NYSDFS is considering a transitional BitLicense for startups, and may exempt non-financial blockchain projects. We applaud Superintendent Lawsky and

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New York should ensure “BitLicenses” are a Step Forward for Innovation

On July 17, the New York State Department of Financial Services (NYSDFS) released a proposed regulatory framework for virtual currencies, such as Bitcoin, that would require businesses that hold, transmit, or convert virtual currencies to everyday currencies to apply for “BitLicenses.” (For background on the BitLicensing framework, read this previous post.)

The following is a truncated version of the comments we filed with NYSDFS today:

It is important to note that while ITIF applauds the desire to bring regulatory certainty, transparency, and clarity to virtual currency businesses, the State of New York is likely the wrong entity to address these important policy issues. One of the challenges of global systems, such as virtual currencies or the Internet, is that they are subject to multiple jurisdictions by sovereign countries. Subnational governments, like states, should not compound the problem of multiple and varied laws between countries by creating their own additional rules and regulations. A better approach would be for states to either defer to the federal government or work in partnership with all states to create a single, national approach to policy.

However, if NYSDFS continues to pursue these regulations,

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The LEADS Act presents a path forward for cross-border digital searches

Last week, Senators Hatch, Coons and Heller introduced the Law Enforcement Access to Data Stored Abroad (LEADS) Act which seeks to clarify the powers that warrants issued by the U.S. courts have on data stored abroad. The LEADS Act also focuses on reforming the Mutual Legal Assistance Treaty (MLAT) process, which are agreements designed for law enforcement agencies to receive and provide assistance to their counterparts in other countries. If enacted, this law could have both immediate effects on a current court case, and far-reaching effects on international agreements for cross-border access to data for law enforcement purposes.

Until now, the U.S. government has argued that it could use the powers granted to it under the Electronic Communications Privacy Act (ECPA) to gain lawful access to data stored abroad if the company storing it had a presence on U.S. soil. The LEADS Act would clarify ECPA, stating specifically that the U.S. government cannot compel the disclosure of data from U.S. providers stored abroad if accessing that data violates the laws of the country where it is stored or if the data is not associated with a U.S. person—a citizen or

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“BitLicenses” Explained

In the past few years, virtual currencies, particularly Bitcoin, have jumped from an online experiment to a multi-billion dollar global phenomenon. Now, governments are starting to recognize these currencies, hoping to both legitimize and secure them with proposed regulations. On July 17, the New York State Department of Financial Services (NYSDFS) released a proposed regulatory framework for virtual currency that would require businesses that hold, transmit or convert virtual currencies to everyday currencies to apply for “BitLicenses.” This is one of the first proposed regulations on virtual currencies in the United States since the IRS proclaimed Bitcoin to be property subject to capital gains tax last March. While NYSDFS is still only seeking comments on these rules and nothing is final, I will attempt to break down the proposal as is and provide some initial thoughts on the implications for virtual currencies.

What is the purpose of the regulations?

NYSDFS announced these regulations as a result of public hearings it conducted in January 2014. NYSDFS hopes to use these rules to protect consumers, prevent money laundering, and improve cyber security for businesses that use virtual currencies. These regulations represent

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Another Problem with the “Right to be Forgotten”

History is riddled with examples where attempts to achieve one outcome actually led to the opposite result. In May, the European Court of Justice (ECJ) ruled that Europeans have the “right to be forgotten,” the ability to request search engines to remove links from queries associated with their names if those results are irrelevant, inappropriate, or outdated. Just as Prohibition famously increased alcohol consumption, it would seem the “right to be forgotten,” while intended to increase online privacy, may actually have the opposite effect, both by cataloging shameful information and incentivizing individuals to publicize the very materials people want forgotten.

Since the decision, Google has scrambled to meet Europe’s demands by creating an online form to process removal requests and hiring new personnel to handle compliance. When individuals want information removed about themselves, they must submit verification of their identity, provide the URLs to be removed, and justify why they should be taken down. Google then verifies that the submitted information is accurate and meets the criteria for removal. Then, if the company decides to take the link down, it notifies the website where the content was posted of

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Promoting Innovation and Competition in Music Licensing

As any musician or songwriter will tell you, music copyright law is a headache.

Today, ITIF filed comments with the Department of Justice (DOJ) to address the consent decrees of Performance Right Organizations (PROs) such as the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music Inc. (BMI). These PROs manage licensing for public performance rights for compositions, the rights to play an artist’s music in a public place, or transmit it to the public via a medium, such as radio, television or the Internet. In 1941, the PROs settled a lawsuit brought by the DOJ with a consent decree designed to stop them from participating in anti-competitive behavior created by the accumulation of public performance rights held by their member songwriters and music publishers. We argue that DOJ should rework these decrees to assist in modernizing the way music copyrights are licensed in the digital age, keeping an eye on innovation, competition, transparency, and fairness.

These organizations are a small part of the complex web that is the U.S. music licensing system, which includes mechanical licenses, synchronization licenses, and sound recording licenses that

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The Expendables: Pirates vs. Action Heroes

Last week, the Expendables 3 was leaked online three weeks prior to the movie’s on-screen release date. It was downloaded close to 100,000 times in the first 12 hours and days later had already surpassed 500,000 downloads, making it the most pirated movie of the week.  Pre-release privacy costs films millions, while reducing creativity, stalling innovation, and harming free speech. While our beloved action heroes were unable to protect their movie from copyright infringement, the Internet community can adopt initiatives to reduce future leaks.

The Expendables III is not the first movie to be pirated before it was released in theaters. This type of leak has occurred for a variety of prominent movie releases, including Star Wars Episode III, Revenge of the Sith, Disney’s the Avengers and X-Men Origins: Wolverine, an incomplete work print copy of which appeared several weeks before the official theatrical release in 2009. Pre-release piracy hurts films because the people who are most interested in seeing the film are those most likely to pirate the pre-release, and therefore not pay to see it in theaters.

The Governmental Accountability Office (GAO) estimates that

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Salsa Dancing into the Digital Economy

Colombia’s national soccer team famously taught the world how to properly celebrate a World Cup goal; now the nation is poised to teach the world a thing or two about innovation. In 2010, Colombia’s Ministry of Information Technologies and Communications (MinTIC) devised a plan to connect 27 million people, or more than half of its population, to the Internet by 2018. This plan, called Vive Digital, has had many accomplishments, which include increasing the number of Colombia’s Broadband Internet connections from 2.2 million to more than 8.2 million. In the past four years, the Colombian government has reduced the barriers for adoption of broadband technologies, efforts that brought computers and tablets to schools and created a robust network for digital entrepreneurs.  MinTIC has also poured investment into Internet infrastructure, and is in the process of extending fiber-optic Internet access to 96 percent of the country’s municipalities—many of which are isolated in remote areas.

The man behind these aggressive efforts is the minister of MinTIC, Diego Molano Vega.

Mr. Molano wants to solve what he says is his country’s most important problem: poverty. In an interview

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How FITARA Can Help Federal Agencies with Their IT Problem

In 2004, the Department of Veterans Affairs was forced to scrap a multimillion-dollar computer system that was designed to streamline the agency’s costs. Ironically, the project cost taxpayers $265 million, and is one of many examples of federal IT projects which go massively over budget and under deliver. Part of the reason for these failures is the last time we made significant changes to how our government acquired its own IT was the Clinger-Cohen Act of 1996. This law was enacted the year before Google.com was registered as a domain name, back when Windows 95 was the new big thing. Almost two decades later, while innovation has continued to press forward, our government’s ability to efficiently acquire new IT has lagged miserably behind.

Luckily, a few lawmakers are trying to remedy that. In March 2013, Congressmen Darrell Issa (R-CA) and Gerry Connelly (D-VA) introduced H.R. 1232, the Federal Information Technology Acquisition Reform Act (FITARA), to overhaul the federal government’s approach to acquiring IT. The bill seeks to designate clear responsibility and authority over federal IT investment, enhance the government’s ability to get good IT, strengthen the federal IT

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